Zimbabwe says fiscal consolidation, key for own currency

HARARE – Building up sufficient foreign-currency reserves and fiscal consolidation are fundamental for the reintroduction of Zimbabwe’s own currency, the central bank governor said.

The southern African country is looking to the U.K., Germany and France to attract foreign investment, Reserve Bank Governor John Mangudya said in an interview with Bloomberg TV on Monday.

The economy needs to be opened up and the country is looking for investment in the key areas of mining, agriculture and tourism.

The nation abandoned the Zimbabwe dollar in February 2009 after an economic collapse saw inflation surge to about 500 billion percent, according to the International Monetary Fund.

Since taking over from Robert Mugabe in November, President Emmerson Mnangagwa has sought to end almost two decades of economic decline and reduce a debt burden of at least $11 billion that it owes to lenders such as the African Development Bank.

As part of the plan, the country will part-privatize or sell 35 state-owned companies and close at least two others, the president saidon April 13.